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Oil Investors Seek Political Stability

Political stability and security of the Islamic Republic are key factors for foreign companies before making investment in the country's oil sector, said a former oil minister.

"Foreigners need to feel assured of the country's future to be able to invest their assets here," Mohammad Gharazi, one of the eight candidates in the 2013 presidential election, told ILNA.

He said Iran's rich oil and gas reserves as well as the exceptional terms it has specified in the new oil contracts are the country's major points of strength in the post-sanctions era.

Iran's revised oil contract, known as Iran Petroleum Contract or IPC, is aimed at accelerating the development of oil and gas fields, making up for underdevelopment of joint fields over the past few years and employing new, advanced technologies in the energy sector.

Tehran has sweetened the terms of the new contract to attract billions of dollars in foreign direct investment for up to 50 oil exploration and production projects, according to officials.

Gharazi said since the landmark July 14 nuclear accord between Iran and six world powers has secured an unswerving political state appealing to foreign investors, conditions must be provided to hearten them to finance oil exploration and development projects in prioritized oilfields.

"Foreign states have followed the recent political developments closely and are sure to line up to negotiate oil deals as soon as oil embargos are fully lifted," he said.

Iran is scheduled to unveil the new oil contract in a conference in Tehran next month before a full-fledged unveiling in London on February 22-24.